Soda Vending Machine

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It seems that first in designing an own strategy of business machine vending was the Cocaine directors Tail, because they acceded in a moment to the distribution of his product through system of spending machine, vending machine. Nevertheless the specificity Coca Cola, makes that its philosophy of marketing associated to his business machine vending, is so genuine, that he is not extrapolable to other sectors nor to other products. In another article “Coca Cola Vending Machines a Star of Marketing” we have reflected with detail on this case, so we were sent him.

In general machine vending, is successful in the measurement in which he is able to break with the habitual chain of distribution, because it makes possible access to points of sale, in which is generally impossible to accede with the traditional methods. Typical example of it is the presence of vending, in strange points to the distribution channel, we can find business machine vending in medical doctor’s offices, clinical of veterinarians, hairdressing salons, institutes or courts.

Another aspect of business machine vending that reinforces its successful, consists of the low costs of maintenance that it is, simply of paying a rent by the space that takes care, and of replacing the products that it provides.

But business machine vending also has weak aspects, among them we can emphasize:

1. Business machine vending is very associate to products of consumption very known. It is precise that it is therefore otherwise will not wake up sufficient confidence in the consumer.

2. Business machine vending serves to reinforce the channel of distribution of marks consolidated in the market. The buyer makes its election of which machine offers business to him vending, based on the previous knowledge and confidence that to him the supply of a well-known product lends.

3. Business machine vending can serve to reinforce the presence of products and new marks, but only referred to products with a high level of substitution. It is possible that through business machine vending is sold well, for example, a new mineral water mark, given to the high level of existing competition in the sector and the high substitution of marks by which it is made in the market. Nevertheless for this type of products business machine vending can be prohibitive, because the commercial margins that are handled are small, so that to accede to this type of distribution it can be especially expensive.

4. Business machine vending seems to have its products very appraised, is frequent to buy refreshment, a soda water, snack through vending. But business is not used machine vending in the supply, for example of detergents or creams to shave. As is the reason for it? If we thought that business machine vending must satisfy an urgent necessity, it is easy to understand that this one must be primary, immediate, reason why the success in the supply is associate to basic physiological necessities, to eat, to drink.

5. Business machine vending has not been successful in sectors different from those from the basic consumption. Years ago the possibility existed, for example, to buy photographic spools in this type of vending, nevertheless the users complained the quality of the product. It is possible that some machine vending did not supply the same quality of the photographic films, but in essence the product was he himself.

6. Business machine vending has tried to introduce itself in other sectors, for example the rent of videos, but its success has been little. The consumer preferred to accede to the traditional store, to be able to touch, to have in his hands the video that is going to rent, before to obtain it by means of vending.

7. Business machine vending is in experimental phase, in new products, that accede to him, for example: the sale of ipod through vending machine. It is soon for analyzing its results, but we are afraid that the success is little probable.

Before all these explanations it is possible to ask, what is business machine vending? The answer cannot be other than to define it like a system of product distribution, outside the habitual channel, limited, at least at the moment, to consumption products, previously known, and that has generated sufficient confidence in the consumer, so that they allow to his purchase through vending machines.

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Have you dropped a coin into vending machines lately?  If you did, you sure contributed another dollar to this whopping billion-dollar industry!No wonder, this has become an attractive cash business opportunity for a number of Americans, but some would get into the vending machines business without preparation; they get burned like moths flying too close to an oil lamp.However the fact can’t be ignored that vending machines have become an indispensable part of the American life as you can spot one vending machine in every conspicuous corner you can find and manufacturers have reinvented vending machines to become fully functional and be able to dispense, not just goodies, but services as well.Vending has given selling another facelift when it becomes possible for even services to be marketed through the vending process.  Gone were the days when only soft drink and bulk candy came out as soon as you drop a coin into the vending slot; now, from your CDs to back massage, vending business has got you covered.Here are tips on how you can potentially set up a vending business that can guarantee you passive income if you still keep your regular job or a means to fortune if you dedicate your efforts to really make your vending business grow:1.) Know Your Territory.  Learn everything you can about the business before you make the plunge.  Collaborate with other entrepreneurs who are into the vending industry and determine the pitfalls they have experienced, which you should avoid and the strategies that have worked for them.2.) Find Your Niche.  You can’t be selling the universe out of your vending machines, thus you should determine your niche market and the products your market may have a strong demand for.  3.) Determine Your Hot Spots.  When you have established a profile of your customers belonging to your niche market, you should determine next, which locations have high volume of foot traffic.  You can capture the flow of traffic right into your vending machines by getting one installed on every place your machine is most likely very much needed.  4.) Do Your Math.  Going into business without a plan is like sailing out at sea without a compass, even worse, because your hard-earned money is involved. If you hated Math in school, this is the right time to look at it from a different point of view.  You need to know and understand basic accounting and its terminologies, such as cash flow, profit and loss statement, working capital and other financial matters that can help you understand your vending business more.You must also calculate how much you should pay the owner of the location where you install your vending machines.  “Small leaks can sink a ship”; you should be wary about the fine prints in business, otherwise you would end up wondering why your vending business is going downhill.5.) Invest wisely.  When you choose vending machines for sale, do not just look at the price.  A lot goes in and out of the vending slot; not just coins and goodies, but your reputation as the owner of your vending business.  If your vending machines are not manufactured by reputable companies, you might end up spending more on repairs and the cost may eat up on your profits.  Poor vending machines also irritate.  Sooner, you will have more people kicking at your vending machines than dropping coins.Chunk of coins go through vending slots everyday that most budding entrepreneurs have laid eyes on the vending industry more favorably these days.  If you are a bit worried the vending business may not be what you want to build your fortune upon, you can start part time and keep your day job.  However, most people have realized that vending business can be a lucrative source of income if managed properly.  It won’t be America’s $20-billion industry for nothing!

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In 2008, Americans bought more than $60 billion worth of vending products. No matter how you look at it, that’s a lot of snacks and drinks.

So where is the best place to purchase the products for your vending business? Before we examine that issue, make sure the products in the machine are what your customer wants. A simple survey letter on the front of each machine asking your customers what items they would like to see in the machine really helps a lot. Leave the surveys on the machine a few days and see what happens. When I’ve done this in the past, I’d usually get requests for beer and wine, but also helpful suggestions. There are a lot of regional brands that people like and the larger vending companies don’t have time to stock. Be different! Be unique! Learn from your customers!

Keep in mind that your existing accounts are the best source of new customers. This survey will generate goodwill for your business and lets your customers know that you care – it’s one personalized service you provide that the larger companies don’t.

Time to Go Shopping: The wholesale clubs – Sam’s, BJ’s and Costco – are generally the best places to buy snacks. They offer as few or as many snacks as you need, at reasonable prices. Check with some of your candy companies to see if they offer product rebates. And always make sure you buy the right size snacks to vend out of your machines. An easy way to find out is to pull an item out of the tray on a spiral snack machine; if the spiral comes out with the snack, the snack is too large.

The major drink manufacturers usually run sales on sodas from Memorial Day until Christmas. Scan newspapers for best prices and even clip coupons. Some of the smaller or independent grocery stores will let you buy large amounts of drinks at a great price at certain times of the year. The 1-to-2 cents you save per can is pure profit and adds to the bottom line.

For coin-operated coffee vending machines, you must buy product through a vending machine product distributor. These items are specially formulated for vending without binding up the machine with humidity. Vending-specific cups are important because they are made to dispense without jamming. Be very careful when buying a case of cups. Always keep the case standing upright so that you don’t flatten out the lip of the cup. If the lip flattens, the cup will jam and the customer will watch his coffee run down the drain.

Don’t be afraid to be different in what you stock, and make sure you charge a fair price for a quality product. These simple steps will help you keep your customers happy – which keeps ‘em coming back for more business.

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So you think you’d like to start a vending business. Do some soul searching and make sure you are the right type of person. Ask:· Are you an entrepreneur? This is someone who must assume all the risks of a business, but can also guarantee the benefits.· Are you self-motivated? There is no 8-to-5 in the vending business; you work until everything is done. On the other hand, there are days when the hours just fly. The really great thing about vending machines is they conform to your schedule: They can be installed just about anywhere, generate sales 24/7 and can be serviced most any time. But it’s up to you to make it happen.

Best ways to get startedThe more information you can get about vending, the better off you will be.· Contact NAMA, the National Automatic Merchandising Association, the trade association that handles issues involving the food and beverage vending industry. They have information on all aspects of the business, including education, health and safety, government affairs, NAMA-certified vending machines, publications, expos and careers. You can reach them at (312) 346-0370 or www.vending.org.· Work for a vending company. You will learn if you really like the business, and find valuable shortcuts, like installing and loading vending machines, buying product, inventory and accountability. Of course, you can learn all that on your own after starting a vending company, but it takes time.· Check with (or find) appropriate business counsel:o Accountant – How best to run the paperwork for the best return – on profits, as well as taxes. Also ask if you should set up your company as a sole proprietorship, corporation or LLC.o Attorney – To set up your corporation and advise on any legal implicationso Banker – Open new accounts solely for the business (don’t use your personal accounts)o State, county and federal governments – Any licenses, permits and other paperwork

Some people avoid all this; they just jump in, set up a couple locations, find out they like the business. . . and then have to go through all this. What a hassle. Do it right from the start and you’ll be able to focus your newfound excitement and energies on building your vending business.

A few words of wisdomBuy the right brand of vending machine – this can make or break your company. Check out the NAMA-certified vending machines and buy one of these. Call a vending company in your town and ask what brand of vending machines they use. If you have decided to buy a particular brand of machine, ask the vendor if he has heard of it or has any experience with it. There are only 5-7 brands of vending machines that I would buy. See my article: “What types of vending machines should I buy?”

Look at what Coke and Pepsi buy when you’re considering drink machines. They have more machines out than any vendors. Find the brand name and model number on the left side of the door, on a manufacturer’s plate. Make sure there is more than one company distributing the parts. If there is only one source and it goes out of business, the machine will no longer be useful to you when replacement parts aren’t available.

Watch out for “biz op” guys. These are the unscrupulous companies that try to rip you off by selling a vending franchise with substandard vending machines, bad accounts, and a franchise that is little more than name only. These companies are here today and gone tomorrow. They steal your money, bankrupt out and laugh all the way to the bank.

The people who stay in this business stay in it for life. Every day is different; you have new challenges and new ways of making money. I seldom see vendors retire, but if they do, they’re back to work in just a few weeks. Compared to running a vending business, golfing and fishing just aren’t enough.

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A vending machine route is an exciting way to start a small business and grow it to substantial income and financial independence.

First, remember that a vending machine route is a business. Like all businesses, success is not guaranteed. Before you embark down the path as a successful vending machine operator, you need to carefully consider what this business will look like and how you’ll run it.

Start by setting goals. Successful vending machine operators have a predetermined goal in mind when they start every year, month and day. Success is a plan, and plans start with goals. Goals start with vision.

Striking a visionWhat is your vision? Do you want to be rich? Earn extra income? Dominate the local vending market, the national vending market, the world vending market? Do you see yourself working part-time or full-time? Mentally create your perfect day. A word of caution: If you think that vending is an “easy” business – you just fill the machines, count your money, and presto, you’re a millionaire – think again. The vending machine route business is a great way to work hard and be well compensated, but with no hard work, there’s no compensation.

Planning your business, setting goalsOnce you have created your goals, start planning your business. What segment of the business do you want to attack? Are you going to be a soda machine supplier only; snack machine/soda machine only; full service, snack machine, soda machine, cold foods machine, coffee machine, commissary, or a unique products vender (CDs, bait, t-shirts, gifts, etc.). Each of these market segments – and there are more out there – requires planning. What equipment do you need, what type of route vehicle, how much money should you budget, which vending product suppliers will you choose (where will you get your product), how do you get your vending machines placed into locations, what financial software do you need, if any, and on and on.

Have I given you anything to think about yet? My goal is to prevent you from jumping into the business because you heard in a hotel ballroom that the streets are paved in nickels, dimes, quarters and dollar bills. The fact that you are doing research means you are on better path than the average potential millionaire.

Research is the great risk reducer in any forum. Doing this basic research means you are on your way, but there is much more to do.

In formulating your plans for a vending business, you also need to perform a basic market research analysis. This sounds complicated, but it really isn’t. Study all the vending machines that you see:· Who operates the machine/s?· Machine’s location· Pricing· Brand of vending machine· How clean is the machine?· Does it work properly?· Is it filled? If so, is it filled with anything you would purchase?· Are people using the machines? With what frequency?

These are some of the questions that will help you formulate plans. They will help you determine what kind of vending machine equipment you need to purchase, what kind of vending machine locations you need to secure, who your competition is, and what kind of pricing you need. This research will help you determine your unique vending machine business feature, what sets you apart from your competitors.

Analyze your prospectsThe next research to do is a customer analysis, and it can be done in conjunction with your initial research. Stop in to a location you think you would like to have and speak with anyone who uses the vending machines. What do they like – and what don’t they like – about their current vending machine operator? Most importantly, listen to the responses and ask follow-up questions. Get critical details: how often does he/she come, do they take requests, are they quick to respond to problems? Let them talk, and they will tell you everything you need to know to do business successfully with that site. Write down all of the responses. Can you do better?

When doing this type of research, be prepared with a sales presentation. I have done this, only to discover that I was speaking with the owner of the business. He was fed up with the vending machine operator they’d been using, and I generated a new customer on the spot.

Another word of caution: Don’t commit to a vending machine account unless you can provide better service than the current operator. Most managers/owners know other managers/owners, and one of your goals should be to generate word-of-mouth advertising. If you take on more than you can handle, or you don’t provide service at the level you committed to, you will generate bad word-of-mouth. That can quickly lead to your having a storage area full of vending machines. Do more than expected, give away a free sample every so often, stop in to talk with the manager, make sure everything is all right, handle refunds promptly, change up your product selection regularly, fulfill requests. These are the techniques employed by successful vending machine operators.

Another key to success in the vending machine route business is to have good accounting practices. Know, to the penny, where your money comes from and where it goes. Understand that many variables can affect your profitability – everything from cost shifts in your product/s to fuel prices. It’s critical to set up a proper accounting system early, one that allows you to grow. You don’t want to waste the time (and expense) of switching accounting systems at some point in the future. Talk with a good CPA and ask for suggestions on a system. There are several off the shelf software products and it’s important to select the one that best suits you and your business.

Careful planning and research are the keys to a successful vending business. Be sure to start your route off with all the benefits.

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Approaching a vending machine is generally an experience we don’t think too much about. It can take a while to decide what to purchase but after that the process should go very fast and smooth. This is something most consumers just take for granted when they want to have their need for a drink or a snack fulfilled.
Before that can happen though a great deal of work has to go into it. For those on the vendor side of things, a machine has to be put in place, products placed into it, and the machine working properly just about all of the time.
The customers have to be the focus and the priority of the business for it to be a success. What is it that people are looking for? What makes that vending machine experience a good one for them? What is going to turn them away from your machines with no chance of returning in the future?
The experience should be a very small part of the day for most customers. Not too many people think about it after it is done with. They do decide to go back another time though if it was a good experience. Getting ripped off though can be annoying and leave you with a bad taste in your mouth each time you walk by that particular vending machine. Most customers won’t make it a big deal if it happens once but more than that and they are done.
Keep every one of your vending machines well stocked. Even if it is working great it can be a disappointment to want water but all that is left is soda. It is important to realize that your vending machine business isn’t going to allow you to stock items during the busy part of the day. You will likely have to do it early in the morning, late in the evening, or even on the weekends. If you can’t commit to that then don’t get involved in this type of business.
The more tuned in to the needs of a customer that a business owner is, the better it will be. This type of business is no different so look for problems you have faced as a vending machine consumer. Use these experiences to offer better service and better options to those that come to your machines to have their needs met.
Customers love the convenience that vending machines offer them. A quick drink or a snack during the day is very important to be able to focus on the rest of the tasks that have to be done. This is a process most customers take for granted though until it doesn’t go according to plan. They don’t want to have to walk away empty handed when they anticipated making a purchase.
Both the owner and the customer are relying on each other to offer what they need when it comes to vending machines. Neither party should try to take advantage of it. You may think it is out of the ordinary to communicate with the owner of a vending machine. However, if it is in your office building and you will be using it several times a week then let them know what your needs are.

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Beverage Vending Machines didn’t just get popular. They are relatively amazing, for they were already in existence as early as 215 B.C. During this time, ancient Egyptians were using a device that has been identified to dispense holy water at places of worships after depositing a coin. In the United States, vending machines were introduced in 1888 when the Adams Gum company started to sell their penny gum products using such machines.

See your favorite beverage vending machine in a subway train station? Or the compact disc album of your favorite music artist in the corner of the town plaza? Those are just few manifestations that vending machines are popular for in America. You can see them almost everywhere you go.

From its humble beginnings, the vending machine business has started its rapid growth. A business report from 2005 states that the vending industry has increased its net sales nearly 40 percent. Starting from chewing gum, vending machines now dispenses everything from sodas to compact discs (CDs) to condoms.

The success of vending industry is attributed to the combined use of technology and mechanisms in different vending equipment. However, this article will focus its discussion of the different parts of beverage vending machines and its relative functions since it is one of the most commonly seen dispensing equipment around. Continue reading and explore what is behind the popularity and success of vending machines.

One of the pioneer products in the vending machine industry has been selling beverages. Usually, beverage vending machines work by selecting the type of beverage you want. You will be required to insert several coins or paper money; the amount will be posted on the machine, in the coin slot. Once the machine detects that the money you have deposited is sufficient enough to purchase the desired beverage, it will dispense the beverage of your choice. Modern beverage vending machines are now accepting paper bills as well as from coins.

Manufacturers of such vending machines usually make use of the same materials as a refrigerator. Platinum finishes and polystyrene panels are used to sustain the cold temperature inside the machine. In order to load the beverages, it has a large slide where the beverages are to be placed to load them into the machine. It also has selection buttons placed in front of the machines in order to facilitate the purchase of the merchandise.

At the end of each bin, the machine has a rotor that will drop the selected beverage can into a chute. The chute will serve as the cans passageway to a ramp where the merchandise will slide to the dispensing area. Presto, you have your selected beverage fresh and cold.

Each bin is equipped with a sensor on its back wall. It will detect if the contents are less than its full capacity and needs to be reloaded immediately. If it is needed to be refilled, the light on the selection button of that particular beverage will flash red.

Some of these parts are also present in other vending machines that sell other merchandise. Without these parts, vending equipment and the vending machine industry would not exist.

Copyright © John Hanna, All Rights Reserved.

This article may be distributed freely on your website and in your ezines, as long as this entire article, copyright notice, links and the resource box are unchanged.

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When starting out in the vending machine business the beat way to do it is by not spending a fortune on your machines.
The key is to find good quality vending machines for the very best price them place them on a location that will allow you to pay off the machine as quickly as possible so you can start to take your profits and reinvest in new equipment and again place them on locations in your community.
This formula will make you money and build your vending business the right way. Going about your business in this manner will also provide you with the most income in the long run. Don’t just make your money then spend it right away. Even if you do try to put a little to the side for the purchase of your next machine will help.
Making money in the vending business really depends on a few factors. First the types of machines that you are using to make money with and more importantly the products that you are selling in the machines.
Profit margins and sales volume are king in vending. You could have the nicest machine but if there is no traffic at your location you won’t make a dime. Plus you need to be selling products that offer high profit margins so you actually make some money.
I have always found that selling soda cans or bottles and snacks like chips, chocolate bars, gum, cookies and candies are the best sellers in my vending machines. I have found that these products offer high profit margins and are really easy to sell.
Like I said the trick is to find your machines for a good price when starting out so do some homework and research before spending your hard earned money on your first vending machine.
This leg work that you now do in the beginning will help you in the long run. One thing to make sure of also is to be sure that whatever machine that you want to buy make sure that you can get parts for them.
This is important because if your machine breaks for any reason you will want to be sure that you can get it fixed as soon as possible so you do not risk losing your account and making your customers unhappy.
Take this information and use it to get started. This is just a snippet of what you can do in the vending business. If you really want to make some serious money in the vending business then you will eventually want to learn strategies for finding your locations because this is the most important part of the business.

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Where you previously would have found a selection of soda, candy and snacks, you will now find a wide selection of digital cameras, camera phones, iPods, accessories, and other electronic equipment. Vending machines all over the country are no longer merely for dispensing snacks to hungry people on the go.

Airports in San Francisco, Atlanta, as well as grocery stores in many major cities, now house a new breed of vending machines. These vending machines have evolved into efficient, automated dispensers where travlers can buy everything from the usual snacks and drinks to the newest, most popular electronic products.

Vending machines that dispense modern electronic products such as digital cameras, iPods and other mp3 players have already become mainstream in Japan and other countries. In those countries, people almost expect these vending machines to be available in popular areas like train stations, airports, grocery stores and shopping malls. Over the past couple of years, they have started popping up in one airport after the other in the United States. In the future, they will likely become a regular fixture in most of our airports, rail stations, grocery stores and other central locations.

These vending machines even accept credit cards as a form of payment. This is probably for the best, since the average traveler isn’t likely to have an extra couple hundred in cash sitting in their back pocket. Although expensive, these new vending machine products are selling surprisingly well.

The reasons for these high vending machine sales are pretty logical when you think about it. Many travelers may be contemplating the purchase and think “I am going to get an iPod eventually anyways. So, why not just buy one now so that I can at least use it on this five hour flight?” Or they may realize, “I’ve been meaning to buy a digital camera. Instead of waiting, why not just get a camera now so that I will have great pictures of this trip.” Other travelers may have just merely forgotten to purchase or pack their items amidst the rush of getting ready for a big trip. Whatever the reason, the products are indeed selling extremely well, which might make some people wonder what vending machines will dispense next.

By dispensing items from vending machines, the companies offering the products can increase the availability of their products without a big increase in overhead. There are no stores to staff or additional building spaces to lease. More people, and travelers in particular, are seeing their product and having the option to purchase it.

Because of the efficiency and innovation potential, vending machines may provide an unlimited number of options in the future for businesses as well as consumers. One thing is for sure; vending machines are evolving to become much more than most people would have ever thought. At this point, the sky is the limit.

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If you’ve been considering your business options, vending machines are certainly worth putting on the list. There are some nice profits to be made.
Vending machines can be owned or rented by a store owner or by an entrepreneur that distributes the vending machines among store locations. Once you obtain the vending machines you want, you need to find locations for them and keep them stocked with merchandise.
If you own your machines, the profits you make are usually shared between you and the business that is housing the machine. The main types of machines include candy, pop, and snack vending machines; but there are other types too such as postal service machines or lotto machines.
As a vending machine operator, you will need to convince other businesses to allow you to place your machine in their outlet. Of course the higher the percentage of the profits they make the more enticed they will be to have your machines. You will have to get used to the word “No,” and not worry about it though.
When approaching a business where you would like to place your vending machines, make sure you are talking to one of the decision-making people. A common mistake is speaking to an employee rather than the owner or a manager that is in charge. Be ready to have 90% of the businesses you approach tell you no, but remember that leaves 10% that will tell you yes.
That means if you approach 100 businesses in a day, 90 will say no and 10 will say yes and that 10 has the potential of earning you a substantial income. So don’t worry about the 90%. Instead focus on the 10%.
Once you get the yes, you need to focus on determining the best location for the machine so that you optimize your revenue. Entrances and exits are always great spots. So are restrooms, lunch rooms, near the coffee maker, and next to other vending machines. You might also consider near a cash register, ATM, or in a waiting room. You need locations where people stop or gather and where they might potentially be looking for a snack.
Bulk candy machines, and toy or gumball machines do well when they are placed where there are kids, and where those kids are standing still waiting for their parents. That’s why you’ll often find them in the front of a restaurant.
These machines are mechanical. The money is placed in the slot and in return a ball, gumball, jewelry cap, or a handful of candy are released. The profit margin on these machines is very good. Your cost per item runs from ½ cent to 5 cents depending on your supplier, and your machines charge from 25 cents to 50 cents. The machines themselves are also a lot cheaper then soda type machines. However to make a full time living on these machines you will need to have many in place.
The soda and snack vending machines are definitely capable of providing a full time income. The advantage to these types of machines is the demand for the product. Combine that with good strategic locations and you’re in business. In fact many companies will actually contact you looking for the placement of a vending machine, especially in lunch rooms and places where the public might gather.
And once you’ve got your machine in their business they are unlikely to ask you to remove it unless you are providing very poor service to the company. After all they aren’t interested in dealing with repairs and stocking of these machines; they just want the convenience.
There are also specialty machines that you might consider such as those found in restrooms that sell hygiene products, condoms, medicine, and other toiletries. These machines do well in airports, bus stations, and truck stops.
Vending machines make a great business. There is plenty of opportunity and you require no special skills other than it’s helpful to be a little mechanical. So why not give it some consideration?

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